It looks like some movies will also be available, as well as new original content[1][2]. This is shaping up to look like a netflix + spotify all in one package.

Certainly this is also an attempt to curb the pervasiveness of adblocking by providing the ad-free option.

[1] https://sites.google.com/site/ytredpress/home/youtube-red-bl... [2] https://sites.google.com/site/ytredpress/youtube-originals/y...